Joint Center for Housing Studies
Harvard University
New Americans, New Homeowners: The Role and Relevance of
Foreign-Born First-Time Homebuyers in the U.S. Housing Market
Rachel Bogardus Drew
N02-2
August 2002
Joint Center for Housing Studies
Harvard University
New Americans, New Homeowners: The Role and Relevance of
Foreign-Born First-Time Homebuyers in the U.S. Housing Market
Rachel Bogardus Drew
N02-2
August 2002
© by Rachel Bogardus Drew. All rights reserved. She thanks Eric Belsky for his
suggestions, guidance, insight, and edits. Short sections of text, not to exceed two
paragraphs, may be quoted without explicit permission provided that full credit, including
© notice, is given to the source.
Any opinions expressed are those of the authors and not those of the Joint Center for
Housing Studies of Harvard University or of any of the persons or organizations
providing support to the Joint Center for Housing Studies.
Abstract
This paper uses the recently released 2001 American Housing Survey to analyze the differences between
the demographic, geographic, housing and financial characteristics of native and foreign-born first-time
homebuyers since 1997. It also examines the differences among racial and ethnic groups of foreign-born
first-time buyers. The paper finds that:
•
•
•
•
•
Foreign-born homeowners have over 1.2 trillion in housing wealth- one-tenth of the total national
housing wealth – despite representing only 8 percent of all homeowners
One in five foreign-born homeowners is a recent first-time homebuyer
The median house value of foreign-born first-time homebuyers is $150,000 - 50 percent higher than
that of native-born first-time buyers largely as a result of the concentration of immigrant households
in metropolitan areas with high cost housing.
To afford these more expensive homes, foreign-born recent first-time homebuyers are making larger
down payments and shouldering heavier cost burdens than comparable native-born homebuyers
A larger share of foreign-born than native-born first-time homebuyers live in metropolitan areas;
however within metro areas, foreign and native-born first-time homebuyers are equally distributed
among central city and suburban areas.
The differences evident between native and first-time homeowners are in some respects reflective of
differences between immigrants and natives overall. Other characteristics are a function of the regional
and metropolitan concentration of immigrant households. As more immigrants continue to arrive in the
United States, housing markets in the future will be shaped in part by the patterns and behaviors
exhibited by new foreign-born homebuyers.
I.
Introduction
In 2001, there were over 5.7 million foreign-born1 homeowners living in the United States, with
$1.2 trillion in aggregate house value and $876 billion in home equity. More than one-fifth of these
households had become homeowners since 1997. And while foreign-born households are only 8 percent
of all homeowners, they represent 14 percent of all recent first-time homebuyers. These 1.3 million
recent immigrant first-time homebuyers alone already have $234 billion in house value and have
accumulated $124 billion in equity in just the last five years.
For many immigrants, homeownership represents achievement of the ‘American Dream’ and is a
symbol of success and status in society. Owning a home not only gives immigrants a stake in America,
but also provides the opportunity to own something of lasting value and a source of wealth.
So strong is the demand for homeownership among immigrants that foreign-born new
homeowners are saving more and stretching their incomes more to become homeowners. And they are
doing so in some of the most expensive housing markets in the nation where they are concentrated. The
foreign-born share of first-time purchases of expensive homes is especially high (Figure 1). Indeed, the
median house value of immigrant first-time homebuyers is $150,000 while those of the native born are
only $100,000. But 40 percent of foreign-born first-time homebuyers live in just twelve metro areas2
that rank among some of the most expensive housing markets in the country3. Within these twelve metro
areas, native-born recent first-time buyers have comparable median house values.
Differences between foreign and native-born homebuyers underscore the fact that the foreign
born constitute a significant and distinct market for starter homes with different housing demands and
resources. This paper is the first to use recently released data on nativity from the American Housing
Survey to analyze the housing characteristics and home buying behaviors of foreign-born first-time
homebuyers. It explores the differences between native and foreign-born first-time homebuyers and
delves into the differences among immigrant groups in their home-buying behavior.
1
For the purposes of this note, the terms “foreign-born household” and “immigrant household” are used interchangeably to
refer to households headed by a person who is not a U.S. citizen by birth.
2
These twelve metropolitan areas are (in order of size of foreign-born first-time homebuyer population) Los Angeles, CA;
New York, NY; Chicago, IL; Miami, FL; Houston, TX; Las Vegas, NV; Orange County, CA; Dallas, TX; Oakland, CA;
Washington, DC; San Francisco, CA; and Phoenix, AZ.
3
For example, 26 percent of all immigrant households are located in just three metropolitan areas – Los Angeles, New York
and Miami – with a combined median house value of $200,000. The median national house value is $120,000.
2
Figure 1: Larger Shares of Foreign-Born First-Time Homebuyers are Buying More
Expensive Homes than Native First-Time Homebuyers
21%
Share of First-Time Buyers Since 1997
Foreign-born
Native-born
18%
15%
12%
9%
6%
3%
0%
Less than
$50K
II.
$50-75K
$75-100K
$100-125K
$125-150K
$150-200K
$200-250K Over $250K
House Value
Financing First-Time Home Purchases
Many factors contribute to the large share of foreign-born purchasing their first home. The
primary reason is simply that large numbers of immigrants arrived in the 1980s and have now been in
the country long enough to make the move to homeownership.
However, a range of new
homeownership initiatives and financing options targeted towards minority households (of which
immigrants make up 30 percent) is also making homeownership more feasible for those who otherwise
would not be able to make a large down payment or qualify for a mortgage.4
4
Minority homeownership initiatives by the Bush and Clinton administrations have given rise to a number of programs
offering convenient and flexible mortgage financing and other incentives for minority and immigrant households, including
programs from Fannie Mae, Freddie Mac, Federal Home Loan Bank System, Mortgage Bankers Association of America,
National Association of Realtors, America’s Community Bankers, American Bankers Association, Mortgage Insurance
Companies of America, and others.
3
Downpayments and Equity
Despite the availability of low down payment mortgages, foreign-born recent first-time
homebuyers are making larger down payments than comparable native-born buyers. While Asian5
homebuyers tend to make the highest down payments, and Hispanics the lowest, all racial/ethnic groups
of immigrant buyers all tend to put down a larger share of the purchase price than native-born White
first-time homebuyers.
Figure 2: Down Payment Ratios of Foreign Recent First-Time Homebuyers with Mortgages
Exceed Those of Comparable Native-Born Households
0-4.9%
5-9.9%
10-14.9%
15-19.9%
20-24.9%
25-29.9%
30%+
Median
Hispanic
Asian
Black
White
Total
Foreign Native Foreign Native Foreign Native Foreign Native Foreign Native
54%
57%
33%
45%
45%
61%
37%
52%
44%
53%
15%
11%
10%
11%
8%
8%
11%
12%
12%
11%
4%
7%
9%
12%
8%
4%
8%
7%
7%
7%
2%
4%
9%
6%
8%
4%
9%
5%
6%
5%
5%
6%
13%
6%
3%
5%
13%
7%
9%
7%
4%
1%
3%
0%
3%
2%
4%
3%
3%
3%
16%
13%
23%
21%
26%
17%
17%
15%
19%
15%
4
3
14
6
9
2
10
4
7
4
Overall the higher down payments made by immigrants translate into greater equity held in their
homes, both at the time of purchase as well as further down the road. Even though the category we have
defined here, as immigrant new first-time homebuyers have only owned their homes since 1997, their
median equity-to-value ratio as of 2001 was 39 percent.
Surprisingly, despite initial low down
payments, Hispanic households were able to accumulate median 36 percent equity in their homes by
2001, buoyed by the rapid house price appreciation in the late 1990s. White and Asian immigrant firsttime buyers accumulated a median 43 percent equity in their homes.
However Black immigrant
households have achieved only a median 28 percent equity despite their median initial 9 percent down
payment, suggesting that they have been buying in less robust housing markets.
Cost Burdens
High down payment ratios do not however mitigate the burden that high house values place on
immigrants’ monthly housing costs. Though their incomes are higher than natives overall, also a
4
function of higher wages found in large metropolitan areas, foreign-born homebuyers are spending a
higher share of their income on housing costs than comparable native-born households. Among all
recent first-time homebuyers, 39 percent of immigrants are paying at least 30% of their income in
monthly housing costs, compared with 28 percent of native first-time homebuyers. Among these
immigrants, Hispanic and Black recent first-time homebuyers are most extended, with 44 percent paying
at least 30 percent of income, compared to 29 percent of Asians. The situation is worse for recent
homebuyers with mortgages, with half of all such Hispanic immigrants paying more than 30 percent of
their income for housing. Figures like these are potential warning signals of households that are
stretching to afford their housing and may be more vulnerable to economic downturns.
Figure 3: Housing Costs as Share of Income of Are Higher for Foreign-Born
First-Time Homebuyers Since 1997, Especially Hispanics and Blacks
<30%
30-50%
>50%
Foreign
55%
27%
17%
Hispanic
Native Foreign
60%
71%
28%
18%
12%
11%
Asian
Native Foreign
65%
56%
26%
23%
9%
21%
Black
Native Foreign
67%
62%
21%
30%
12%
8%
White
Native Foreign
73%
61%
18%
25%
9%
14%
Total
Native
71%
19%
9%
III. Demographics of Recent First-time Homebuyers
What are the demographic characteristics of these immigrant homebuyers? In some respects the
1.3 million foreign-born first-time U. S. homebuyers since 1997 reflect the new face of immigrant
households in the United States – younger immigrants from Latin America and Asia, residing primarily
in large metropolitan areas. Yet within the immigrant population, the characteristics of these first-time
homebuyers can vary greatly among different racial and ethnic groups and by area of origin. Evaluating
these effects allows us to further examine differences in the home buying behavior of immigrants
relative to native-born homebuyers.
Origins
Given that a majority of all immigrant households are from Asia and Latin America, it is not
surprising these regions are also heavily represented among foreign-born first-time homebuyers6. The
5
Asians, Blacks and Whites are non-Hispanic. Hispanics can be of any race. Asians includes Pacific Islanders and other
races/ethnicities not identified by the other categories.
6
For a more detailed discussion on the comparison of foreign-born recent first-time homebuyers to all immigrant households,
see Appendix 2.
5
largest share of foreign-born first-time homebuyers are from Northern and Central America7, followed
by Asia, owing in part to the surge in the numbers of immigrants entering the country from these regions
in the 1980s. This also explains the racial and ethnic composition of new homebuyers, of which almost
three-quarters are Asian or Hispanic.
Figure 4: Most Foreign-Born First-Time Homebuyers Since 1997
Are Hispanic or Asian
Africa Other/unknown
3%
1%
South America
North/Central
7%
America
Middle-East
38%
9%
White
19%
Hispanic
44%
Black
7%
Caribbean
10%
Europe
12%
Asian
30%
Asia & Pacific Islands
20%
Age and Time to Homeownership
Also consistent with the composition of the total population of immigrants to the United States, a
large share of recent first-time homebuyers arrived in the U.S. in the last two decades. However, the
rate of first-time home buying is also influenced by the ages at which these immigrants came to the U.S.
More than half of these recent homebuyers arrived when they were in their late teens and 20s.
Therefore, many of them were reaching their prime home buying age, which for foreign-born
homebuyers is around 35 years old, over the past five years. This combination of forces has contributed
to a surge in foreign-born first-time buyers.
7
Includes Canada, Mexico, Guatemala, El Salvador, Honduras, Nicaragua and the category Other North and Central
America. Mexico makes up the bulk of this category, with 30 percent of all foreign-born first-time homebuyers.
6
Figure 5: Specific Ages and Decades of Arrival distinguish Foreign-Born
First-Time Homebuyers Since 1997
Age
Pre-1970 1970-74 1975-79 1980-84 1985-89 1990-94 1995-2001
Total
Share
131,879
10%
122,517
10%
0-9
40,755
38,642
33,411
14,557
4,514
10-14
15,263
9,865
10,067
32,691
52,089
2,543
15-19
4,841
11,904
13,438
63,563
75,475
43,489
3,032
215,742
17%
20-24
5,917
7,119
16,056
38,544
78,313
71,962
19,771
237,682
19%
25-29
2,484
7,840
9,063
26,430
64,537
53,420
51,653
215,427
17%
30-34
1,988
11,570
25,392
27,736
48,243
50,224
165,152
13%
35-39
5,242
3,249
2,712
19,437
17,855
21,146
69,642
6%
2,422
5,447
12,951
32,782
49,888
103,488
8%
100%
40+
Total
69,259
82,599
99,277
209,336
335,050
270,293
195,716
1,261,531
Share
5%
7%
8%
17%
27%
21%
16%
100%
The relationship between year of entry and age at arrival in determining how quickly immigrants
move to homeownership, and how old they are when they purchase their first home, is visible when
comparing across racial and ethnic groups. For example, Black immigrant recent first-time homebuyers
had the earliest median year of entry (1984) and the oldest median age at arrival (25). Thus they have
the oldest age at homeownership (38) and the longest time to homeownership (13 years).
The
relationship is not perfect however, as White immigrant new homebuyers have the fastest time-tohomeownership despite a median year of arrival and age at entry that fall in the middle among the racial
and ethnic groups. Thus other non-quantifiable or unobserved factors, like wealth, family support, and
ease of assimilation into American society, also contribute to an immigrant’s move to homeownership.
Figure 6: Differences in Age and Time to Homeownership among Foreign-Born First-Time
Homebuyers Are Related to Year of Arrival
Hispanic
Asian
Black
White
Total
Median Year of Entry
1986
1989
1984
1988
1987
Median Age at Arrival
21
24
25
24
23
Median Time to Homeownership
13
11
13
9
12
Median Age at Homeownership
34
35
38
36
35
7
Education and Income
The amount of education recent immigrant first-time homebuyers have also varies by their
racial/ethnic identity. While the median level achieved by this group is high school graduate, the
majority of Hispanic homebuyers have only had some high schooling without receiving a diploma.
Among Black homebuyers, most have had at least some college-level education, and a majority of Asian
and White first-time home buying immigrants have received their college degree.
As education is often a predictor of income, it is not surprising that Hispanic immigrant recent
first-time homebuyers have the lowest median incomes, followed by Blacks, Whites and Asians, in that
order. In fact these Asian immigrants’ median income is more than 50 percent greater than Hispanic
immigrant first-time homebuyers. Furthermore, the share of these Hispanic immigrant households with
incomes below their area median income is almost two-thirds, while among comparable Asian and
White immigrants only about one-third have below area median incomes. Black immigrant household
incomes are more evenly distributed.
Family Composition and Size
Housing demographers have long known that married couples, both with and without children,
traditionally are the most likely to be homeowners. Thus it is no surprise that they also make up the
largest share of foreign-born recent first-time homebuyers, three-quarters of whom are married and
almost 60 percent married with children.
While married couples are the majority of first-time
homebuyers within each of the four racial/ethnic groups, there are distinct differences in the distribution
of family types overall by race and ethnicity (see Figure 9). These differences are in part reflective of
prevailing family compositions among all immigrants of each racial/ethnic group, though overall a
greater share of Black and White immigrants are childless married couples instead of those with children
– reflective of many older immigrants in these groups with grown children no longer living at home.
Nonetheless these differences in family compositions demonstrate distinct subsets of each group that are
more likely to become first-time homeowners.
8
Figure 7: More than Half of all Foreign-Born First-Time Homebuyers Since 1997
Of all Races/Ethnicities are Married
Total Households
Married w/o Children
Married w/ Children
Single Parent
Other Family
Single Person
Other Non-family
Hispanic
557,959
14%
65%
7%
9%
4%
1%
Asian
375,243
21%
59%
5%
7%
6%
2%
Black
91,130
11%
44%
24%
11%
10%
Na
White
237,199
26%
46%
2%
6%
19%
2%
Total
1,261,531
18%
58%
7%
8%
8%
2%
Family size also varies among immigrants, with Hispanic immigrant new homebuyers averaging
4.5 persons per household compared with fewer than 3 persons per similar White immigrant households.
Overall immigrant first-time homebuyers average more than one additional person in their homes than
native first-time homebuyers.
IV. Housing Choices of New Homeowners
The demographic make-up of immigrant first-time homebuyers sheds light on who they are, but
tells us very little about their role in the housing market. Beyond knowing the age, education and
income of new homebuyers, we should also look at what types of homes they buy, where they are
buying them, and with what qualities.
Geography of New Homeowners
As mentioned above, a larger share of foreign-born first-time homebuyers are living in
metropolitan areas than their native-born counterparts. Yet for those households within metro areas,
native and foreign-born first-time homebuyers are similarly distributed, with almost two-thirds of both
native and foreign-born first-time homebuyers in an MSA purchasing their home in the suburbs rather
than a central city neighborhood.
9
Figure 8: Most Urban Foreign and Native Born First-Time Homebuyers Since 1997 Live In
Suburbs
Metro Status
Number
Foreign-Born
Percent
Central City
Other MSA
Non-Metro
Total
454,558
753,174
53,800
1,261,531
36%
60%
4%
100%
Percent in
Metro Areas
38%
62%
na
100%
Number
Native-Born
Percent
2,119,995
4,049,575
1,708,864
7,878,434
27%
51%
22%
100%
Percent in
Metro Areas
35%
65%
na
100%
Regionally, greater disparities exist between native and foreign-born first-time homebuyers. The
share of foreign-born first-time buyers in western states is twice that of native-born homebuyers, while a
much greater share of native buyers live in the South and Midwest. Yet even among the foreign-born,
there are dramatic differences in regional distribution by race and ethnicity. Of immigrant first-time
homebuyers, more than one-half of Hispanics and one-third of Asians can be found in the West, while
nine out of ten Blacks are in the Northeast and South.
Figure 9: Regional Distribution of Foreign-Born First-Time Homebuyers Since 1997
Varies by Race/Ethnicity
Total Households
Northeast
Midwest
South
West
Hispanic
557,959
6%
9%
33%
52%
Asian
375,243
23%
15%
28%
34%
Black
91,130
46%
2%
44%
7%
White
237,199
29%
18%
22%
31%
Total
1,261,531
19%
12%
30%
39%
Native Whites
6,030,709
19%
28%
34%
19%
Type of Structure
The type of homes first-time immigrant homebuyers are choosing in some cases mirror those
chosen by native homebuyers, but in other ways are unique to particular groups of foreign-born
homebuyers. More than 70 percent of both native and foreign-born recent first-time homebuyers overall
purchased detached single-family homes, though within the four racial/ethnic groups these proportions
vary widely. Consequently the shares of each group living in other types of homes, i.e. multi-unit
buildings and manufactured homes, also differs (see Figure 11). Part of this trend is related to the
geographic distribution of these foreign-born homebuyers; for example, foreign-born Black households
are heavily concentrated in the Northeast, which has the lowest proportion of single-family detached
homes and the highest proportion of single-family attached homes (i.e. row houses) of the four regions.
10
Figure 10: Most Foreign-Born First-Time Homebuyers Since 1997 Purchased Detached Single
Family Homes
Foreign
Native
Percent Single Family Detached
85
75
65
55
45
Hispanic
Asian
Black
White
Quality of Housing Stock
The age and size of homes purchased by immigrants also varies by race/ethnicity. Nearly half of
all Asian immigrants recently purchased a home built since 1985, while more than that share of
Hispanics and Whites purchased homes built before 1970. Age of the home is not correlated with size
however, as Hispanics have the smallest median housing size and Whites the largest. And with Hispanic
households generally having more persons than other immigrant groups, crowding is more prevalent in
homes recently purchased by Hispanic immigrants. White immigrants have almost double the perperson square footage as Hispanics. Overall, native-born recent first-time homebuyers have almost 50%
more square-feet-per-person in their homes than immigrants. This is partly a reflection of their greater
representation in lower cost markets where per square foot costs are lower. Indeed the selection by
foreign-born buyers of older or smaller homes relative to those bought by natives reflects the types of
units available to them in large metropolitan areas where they are concentrated.
11
Figure 11: Housing Characteristics of Foreign-Born and Native-Born First-Time Homebuyers Since
1997 Differ by Race/Ethnicity
Total households (thousands)
Type of unit
One-unit building, detached
One-unit building, attached
Building with two or more
apartments
Manufactured (mobile) home
Age of building
Pre-1950
1950-1969
1970-1984
1985-2001
V.
Hispanic
Asian
Black
White
Total
Foreign Native Foreign Native Foreign Native Foreign Native Foreign Native
558
566
375
215
91
1,067 237 6,031 1,262 7,878
74%
8%
80%
8%
71%
15%
63%
16%
53%
35%
72%
10%
72%
10%
72%
7%
71%
12%
73%
8%
7%
12%
5%
6%
9%
4%
16%
5%
13%
0%
3%
15%
16%
2%
7%
14%
10%
7%
6%
13%
24%
32%
27%
17%
23%
28%
18%
32%
13%
19%
21%
48%
14%
23%
24%
38%
20%
16%
28%
36%
22%
24%
17%
37%
18%
33%
29%
21%
23%
22%
22%
33%
19%
27%
25%
28%
23%
23%
21%
34%
Average persons per household 4.52
3.39
3.59
2.97
3.71
3.09
2.85
2.62
3.87
2.75
Median square footage of unit
1,144
1,321
1,500
1,416
1,400
1,320
1,500
1,400
1,326
1,400
Median square feet per person
275
417
445
550
458
463
533
600
368
550
Conclusion
Understanding the distinct characteristics of foreign-born recent first-time homebuyers will
become increasingly important in the coming years, as the 10 million new immigrants that arrived
during the 1990s enter their prime phase for becoming new homeowners. As housing markets absorb
these new homebuyers, their impact will continue to shape cities and regions across the country and play
a vital role in the housing economy. Though their housing options are limited by their geography, they
nonetheless represent a subset of the home buying population with different needs, demands, and
choices for financing home purchases.
12
Appendix 1
Comparison of demographic statistics between AHS, CPS and Census
The American Housing Survey (AHS) is the chief source of information on the conditions and
preferences of the 106 million American households. The longitudinal survey, conducted biennially,
provides details on housing units, neighborhoods and the people living in them.
Policy makers,
economists, sociologists, demographers and real estate analysts use it to better understand the
conditions, preferences and trends in the U.S. housing market.
Demographic information further
identifies the differences between households based on age, race, family composition, etc.
Until now, AHS demographic information did not include nativity of residents. However, with
more than one in ten households headed by immigrants, their impact on housing in the U.S. is
significant.
Foreign-born households are changing the geography of many urban areas, creating
identities among some immigrant groups and neighborhoods within cities. As immigrants become
homeowners, their decisions on where and what to buy influence the construction and remodeling of the
housing stock, as well as how financial institutions market mortgage products to a new class of
homeowners. Recent growth in foreign-born households has also helped to keep the housing economy
vibrant and growing through the recent economic downturn.
Other sources of household level data, such as the Current Population Survey and the Decennial
Census Supplementary Survey8, have reported on the nativity of households in the past. However these
datasets do not include the detailed housing variables of the AHS, and are thus limited in their capacity
to evaluate the choices and consequences of a growing foreign-born population in the housing market.
The Current Population Survey (CPS) gives annual statistics on detailed demographic qualities of
foreign-born householders by tenure choice but provides no further details on housing. Decennial
Census reports supply some general information on housing conditions, such as size and basic amenities,
but are available only every ten years. AHS provides the best resource for analyzing the determinants of
housing choice and how certain groups prioritize their housing options. Still, it is a worthy exercise to
compare the demographic data on foreign-born households from other datasets to the AHS, as an
indicator of the viability of the AHS housing data.
8
The Census Supplementary Survey is used in place of the actual 100% population count Census because of data availability
at the time of this paper. As of August 2002, the Census Bureau had not yet released micro data on the demographic and
housing variables from Summary File 3 of the 100% sample.
13
The following chart (Table A1-1) outlines the statistics generated by the three datasets in
comparable years. Looking at all foreign-born households, the AHS estimates one million fewer than
either CPS or Census, though the number of total households is only 150,000 less than the other
datasets. The AHS appears to undercount foreign-born households in younger age groups, smaller race
groups (i.e. black immigrants), immigrants from the 1970s and those living in the South.
The
distribution by education level is varied among all three datasets. Yet the degrees of differentiation
between the three are not so extreme as to discount the viability of the AHS data in analyzing immigrant
housing statistics.
14
Table A1-1: Comparisons of Select Demographic and Housing Statistics of Foreign-Born Households by Three Datasets
12,372,649
6,052,456
6,320,193
CPS 2001
Percent of all
foreign born
100%
48.9%
51.1%
Percent of all
households
11.6%
8.4%
18.3%
2000 Census Supplemental Survey
Percent of all Percent of all
Number
foreign born
households
12,252,567
100%
11.5%
6,108,826
49.9%
8.7%
6,143,741
50.1%
16.9%
11,251,601
5,730,290
5,521,311
AHS 2001
Percent of all
foreign born
100%
50.9%
49.1%
Percent of all
households
10.6%
7.9%
16.2%
822,722
2,866,539
3,254,811
2,260,240
1,465,631
914,834
787,871
6.6%
23.2%
26.3%
18.3%
11.8%
7.4%
6.4%
12.8%
15.4%
13.6%
10.4%
10.5%
8.2%
7.4%
700,691
2,953,103
3,193,583
2,322,715
1,345,900
962,119
774,456
5.7%
24.1%
26.1%
19.0%
11.0%
7.9%
6.3%
11.6%
15.4%
13.1%
10.9%
9.5%
8.4%
7.4%
575,402
2,563,951
3,038,562
2,194,546
1,270,148
882,454
726,538
5.1%
22.8%
27.0%
19.5%
11.3%
7.8%
6.5%
9.3%
13.8%
12.7%
10.1%
9.0%
8.2%
6.6%
4,980,073
2,792,826
1,025,055
3,574,695
40.3%
22.6%
8.3%
28.9%
51.5%
64.0%
7.9%
4.5%
4,819,015
3,002,220
901,841
3,529,491
39.3%
24.5%
7.4%
28.8%
50.2%
54.9%
7.6%
4.4%
4,601,386
2,781,670
799,864
3,068,681
40.9%
24.7%
7.1%
27.3%
46.9%
59.6%
6.1%
3.9%
2,967,018
2,275,717
2,124,285
1,324,624
1,131,541
956,161
741,937
431,368
419,997
24.0%
18.4%
17.2%
10.7%
9.1%
7.7%
6.0%
3.5%
3.4%
na
na
na
na
na
na
na
na
na
2,967,242
2,432,321
2,335,360
1,350,006
1,147,157
995,862
630,544
392,114
1,961
24.2%
19.9%
19.1%
11.0%
9.4%
8.1%
5.1%
3.2%
0.0%
Na
Na
Na
Na
Na
Na
Na
Na
Na
2,869,878
2,071,785
2,083,942
1,128,888
960,828
938,834
669,158
334,694
173,456
25.5%
18.4%
18.5%
10.0%
8.5%
8.3%
5.9%
3.0%
1.5%
na
na
na
na
na
na
na
na
na
502,894
639529
1293053
2,285,609
3,455,925
4,195,639
4.1%
5.2%
10.5%
18.5%
27.9%
33.9%
na
na
na
na
na
na
544,248
772,500
1,370,330
2,269,472
3,473,825
3,822,192
4.4%
6.3%
11.2%
18.5%
28.4%
31.2%
Na
Na
Na
Na
Na
Na
436,457
690,539
1,241,069
1,835,707
3,336,373
3,711,456
3.9%
6.1%
11.0%
16.3%
29.7%
33.0%
na
na
na
na
na
na
3,008,927
1,341,054
3,477,768
4,544,900
24.3%
10.8%
28.1%
36.7%
14.9%
5.5%
9.0%
19.6%
3,009,113
1,445,518
3,424,373
4,373,563
24.6%
11.8%
27.9%
35.7%
14.6%
5.8%
8.9%
19.1%
2,737,927
1,134,112
2,989,290
4,390,272
24.3%
10.1%
26.6%
39.0%
13.4%
4.6%
7.8%
19.0%
2,445,287
1,379,172
2,784,522
1,410,988
683,013
2,337,720
1,331,948
19.8%
11.1%
22.5%
11.4%
5.5%
18.9%
10.8%
34.9%
13.5%
8.5%
7.1%
7.9%
12.7%
13.9%
2,231,068
1,685,862
2,431,574
510,587
1,979,131
1,877,547
1,536,798
18.2%
13.8%
19.8%
4.2%
16.2%
15.3%
12.5%
32.6%
13.8%
8.1%
6.6%
8.8%
10.7%
15.1%
2,187,239
1,519,950
2,219,754
1,298,047
787,572
1,945,394
1,293,646
19.4%
13.5%
19.7%
11.5%
7.0%
17.3%
11.5%
33.4%
11.5%
7.5%
6.8%
7.6%
11.0%
13.3%
Foreign
$20,000
$38,666
$69,534
Native
$21,920
$42,600
$73,474
Overall
$21,521
$42,024
$73,000
Foreign
$20,000
$38,300
$67,600
Native
$21,300
$41,000
$69,000
Overall
$21,000
$40,700
$69,000
Foreign
$20,000
$38,000
$69,000
Native
$20,000
$40,000
$72,000
Overall
$20,000
$40,000
$71,768
Number
Number of foreign born households
Owners
Renters
Foreign born householders by age
Under 25
25-34
35-44
45-54
55-64
65-74
75 and over
Foreign born householders by race/ethnicity
Hispanic
Asian
Black
White
Foreign born householders by region of origin
Mexico
Europe
Asia & Pacific Islands
Caribbean
North/Central Amer. excl. Mexico
Middle-East
South America
Africa
Other/unknown
Foreign born householders by year of arrival
Before 1950
1950-1959
1960-1969
1970-1979
1980-1989
1990-2001
Foreign born householders by region of residence
Northeast
Midwest
South
West
Foreign born householders by level of education
No High School
Some High School
High School Diploma
Some College
Associates Degree
College Degree
Graduate Degree
Foreign born households by income
25th percentile
Median
75th percentile
Number
15
Appendix 2
Comparison of Foreign-Born First-Time Homebuyers Since 1997 with All Foreign-Born Households
To an extent, the composition of foreign-born recent first-time homebuyers reflects that of all immigrant
households currently residing in the United States. But in the cases where the two groups Figure different traits,
we are able to identify which foreign-born households are most likely in the future to buy their first homes.
One way in which recent first-time homebuyers differ from all immigrants in their racial composition,
indicating some groups are more likely to have made recent jumps to homeownership than others. For example,
Hispanic and Asian immigrants combined account for two out of three immigrant households overall, but
almost three-fourths of foreign-born first-time homebuyers since 1997 (See Figure 4 in text). Meanwhile White
immigrants head one-quarter of all immigrant households, but are less than one-fifth of recent first-time buyers.
This difference however is wholly related to the year of arrival of many of these immigrants. With first-time
homeowners represented primarily by those immigrants arriving in the last two decades, then those groups that
have the highest share of all immigrant households arriving in the 1980s and 1990s more likely to be among
recent first-time buyers.
Table A2-1: Percent of All Immigrant Households for Each Race/Ethnicity by Decade of Arrival Share
that Are First-Time Homebuyers Since 1997
Hispanic
Asian
Black
4,603,978
2,781,670
799,864
Pre-1960
5%
2%
3%
27%
10%
1960-1969
10%
6%
10%
17%
11%
1970-1979
19%
16%
15%
13%
16%
1980-1989
35%
35%
35%
16%
30%
1990-2001
31%
41%
36%
27%
33%
12
13
11
8
11
Total Households
Percent of Total that are FTHB
White
Total
3,071,309 11,256,821
While the race/ethnicity of foreign-born recent first-time homebuyers does not closely match that of all
immigrants, their regions of origin do. As discussed in this paper, recent first-time homebuyers are distributed
by world region of origin similar to other foreign-born households, with North and Central America leading at
almost 40% of each group. However some country-level analysis reveals differences. Though small sample
sizes make it difficult to count immigrant homeowners from many individual countries, for some countries with
large numbers of recent immigrants we can identify some differences in home buying rates. Specifically, 30
percent of recent first-time immigrant homebuyers were Mexican, though 28 percent of all immigrant
16
households since 1965 were. Likewise immigrants from India were 6 percent of recent first-time homebuyers
but 4% of all modern immigrants. For some countries, their share of first-time homebuyers was more than oneand-a-half times as high as their share of all immigrants (Jamaica and Poland) or even double (Guatemala).
Table A2-2: Immigrants since 1965 and First-Time Homebuyers since 1997
All households
since 1965
2,663,454
Share of all
households
27.8%
Rank
1
FTHB since
1997
360,766
Share of all
FTHB
29.5%
Rank
1
India
412,275
4.3%
2
72,292
5.9%
2
China
364,240
3.8%
4
52,027
4.2%
4
Philippines
407,991
4.3%
3
55,816
4.6%
3
Vietnam
310,881
3.2%
5
44,536
3.6%
5
Jamaica
214,475
2.2%
10
43,918
3.6%
6
Korea/South Korea
292,288
3.0%
6
35,721
2.9%
8
Guatemala
133,053
1.4%
19
38,099
3.1%
7
El Salvador
255,367
2.7%
7
30,983
2.5%
9
Poland
123,296
1.3%
21
28,087
2.3%
10
All Other
4,410,373
46.0%
na
462,012
37.3%
na
Total
9,587,693
100%
na
1,224,255
100%
na
Country of Origin
Mexico
Once arrived in the United States, the geographic distribution of foreign-born homebuyers is similar to
foreign-born households overall, with the majority of both groups residing in metropolitan areas and in southern
and western states. However within these metro areas, recent first-time homebuyers are more likely than other
foreign-born households to live in suburbs rather than in central cities. All foreign-born households are about
equally split between central city and suburb, while 65 percent more recent first-time homebuyers live in
suburbs. This trend indicates a recent penetration of immigrants and minorities into fringe communities that
were previously unavailable to them.
This difference in metro status extends across race and ethnicity among foreign-born households and
recent first-time homebuyers. Table A2-3 shows both regional and metropolitan households for the two groups,
and further illustrates the similarities and differences among them.
The age distribution of immigrant households also differs relative to first-time homebuyers. In general,
the first-time homebuyers are younger than other foreign-born households, particularly non-first-time
homeowners. The most extreme difference is among White immigrants, most of which arrived before 1980.
17
While the median age of the first-time homebuyers is 38 years old, the median age of all immigrant household
heads is 51 years old – more than ten years older than that of the other racial/ethnic groups.
New homebuyers also tend to have higher incomes than other immigrant households, with median
household incomes of $56,000 and $40,000, respectively.
This trend persists across race and ethnicity.
However the share of both groups with incomes over $150,000 is the same at 6 percent. Still, the share of all
immigrant households with incomes below the local area median is 65 percent, but only 49 percent for first-time
homebuyers. A part of the difference in income may be a matter of self-selection; those immigrants with higher
incomes are better able to afford to become homeowners, especially in the high-cost housing markets where
most immigrants live, and thus are more likely to become homeowners than those without the financial
resources.
Perhaps surprising given the differences in income between all immigrants and just the first-time
homebuyers, the education levels of both groups are very similar. However this aggregation across race and
ethnicity hides some greater discrepancies among specific groups. For example, among White first-time
homebuyers, a greater proportion received college and graduate degrees (50%) and a smaller share did not
complete high school (5%) relative to all White immigrants (38% and 17% respectively). Conversely, Hispanic
immigrants overall tend to be better educated than those recently purchasing their first home.
It is apparent that in some respects the differences observed between native and foreign-born first-time
homebuyers, both overall and by race/ethnicity, are simply reflective of the differences between all native and
foreign-born households.
In the situations where characteristics of first-time homebuyers differ from all
immigrant households, such as income and family type, often the trait in question varies also between native
homeowners and all households as well. However it is the combination of these two forces, nativity and
homeownership, which distinguish the foreign-born first-time homebuyers from other groups in the housing
market.
18
Table A2-3: Geographic Distribution of All Foreign-Born Households and Recent First-Time Homebuyers
Region
Metro Status
Hispanic
All HH
FTHB
Asian
All HH
FTHB
Black
All HH
FTHB
White
All HH
FTHB
Total
All HH
FTHB
Northeast
Central City
Other MSA
Non Metro
Total
9%
4%
0%
13%
2%
4%
na
6%
14%
9%
0%
23%
11%
12%
na
23%
42%
12%
0%
53%
28%
18%
na
46%
17%
15%
2%
34%
16%
13%
na
29%
15%
9%
1%
24%
10%
9%
na
19%
Midwest
Central City
Other MSA
Non Metro
Total
4%
2%
0%
6%
5%
4%
na
9%
5%
6%
1%
11%
5%
8%
1%
15%
4%
1%
0%
5%
2%
na
na
2%
5%
10%
1%
16%
2%
15%
1%
18%
5%
5%
1%
10%
4%
7%
1%
12%
South
Central City
Other MSA
Non Metro
Total
15%
17%
3%
35%
11%
19%
3%
33%
6%
13%
1%
20%
5%
21%
2%
28%
14%
18%
0%
32%
7%
37%
na
44%
5%
11%
1%
18%
4%
17%
na
22%
10%
15%
2%
27%
7%
21%
2%
30%
West
Central City
Other MSA
Non Metro
Total
21%
22%
2%
45%
20%
29%
3%
52%
21%
24%
1%
45%
12%
21%
1%
34%
4%
5%
0%
10%
5%
na
2%
7%
10%
19%
3%
32%
11%
20%
na
31%
17%
20%
2%
39%
15%
23%
2%
39%
All
Central City
Other MSA
Non Metro
Total
49%
45%
6%
100%
38%
56%
6%
100%
46%
52%
2%
100%
34%
62%
4%
100%
64%
35%
1%
100%
43%
55%
2%
100%
38%
55%
8%
100%
33%
66%
1%
100%
46%
49%
5%
100%
36%
60%
4%
100%
19